Whilst i firmly believe a person has a right to be whatever Gender they feel most comfortable as, I dont really think a Child should be encouraged to do this kind of thing, by all means a Parent should be open, honest and accepting if a Child has these kinds of issues, but Kids go through phases all the time, Im not saying that this is what has happened in this case, I dont know the particulars and I dont pretend to know what is happening inside a Transgender persons mind.
Im not really sure what the correct answer is here, its not easy, Ive heard stories of young kids so convinced they should be the other Gender and hurting themselves because of the emotional pain they were in and i would hazard a guess a fear of that kind of situation is what drives the Parents, rather than any kind of "Liberal agenda"
In short, im not sure of the right thing to do here, im not sure this is it, but im not sure what is.
I'm the English Guy